California Non-Residential Building Energy Disclosure Program Information

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California Landlords who rent non-residential property must comply with the California Nonresidential Building Energy Use Disclosure Program.

Document Last Modified: 5/31/2023

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State Specific Clauses

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AB 1103 requires owners of nonresidential buildings over 5,000 SF to rate their buildings using Energy Star software. They must disclose a Statement of Energy Performance to the California Energy Commission (CEC) as well as to prospective buyers, lessees or lenders prior to the closing of a transaction. Utilities are required, at the request of a building owner, to automatically upload energy consumption information for a building into Portfolio Manager software.

Although the law was scheduled to come into effect in 2009 for utilities and in 2010 for building owners, the benchmarking mandate was delayed until 2012. Final regulations were published in March 2012, with dates by which building owners must submit energy performance to the CEC. These deadlines have been delayed several times. The most recent posting of dates, published on 08/14/2013, lists the enforcement deadliness as follows:
January 1, 2014 for bulidings 10,000 and larger
July 1, 2014 for buildings 5,000 to 9,999 SF

AB 1103 does not apply to multifamily buildings or the partial sale, lease or financing of nonresidential buildings. The Statement of Energy Performance is valid for 120 days following its generation. If a building owner makes a subsequent disclosure outside of this time period, they must re-benchmark the building and generate a new Statement of Energy Performance.

California Nonresidential Building Energy Use Disclosure Program

Pursuant to the California Nonresidential Building Energy Use Disclosure Program, building owners or operators are required to disclose the building’s energy use if:

  1. The ENTIRE building is being offered for sale, Lease, finance, or refinance.
  2. The building is 5,000 feet or larger.
  3. The building is classified as one of the following occupancy types: A (assembly); B (business); E (education); I-1 and I-2 (institutional); M (mercantile); R-1 (transient - residential), S (storage), and U (parking garage).

Landlords whose property falls into all three categories must follow specific procedures to disclose energy usage to prospective buyers, lessees, or lenders. Download the document to get step-by-step guidance to ensure compliance.

Pro Tip: Once you have complied with all requirements, use the California Energy Disclosure to document that your Tenant was provided with all necessary disclosures.

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